In a scenario where a father is insured with co-primary beneficiaries and one beneficiary passes away, how much will the contingent beneficiary receive after both primary beneficiaries are deceased?

When a life insurance policy has co-primary beneficiaries, the death benefit is typically divided among those primary beneficiaries according to the terms of the policy. If one of the co-primary beneficiaries passes away before the insured, their share does not automatically transfer to the contingent beneficiary. Instead, the death benefit would be divided only among the surviving primary beneficiaries at the time of the insured's death.

If both primary beneficiaries are deceased when the insured passes away, the contingent beneficiary would then be positioned to receive the total death benefit. Therefore, in this scenario, since the correct choice states that the contingent beneficiary receives nothing when there are surviving primary beneficiaries, it accurately states the outcome depending on the timing of beneficiaries' deaths relative to the insured's death.

Ultimately, it highlights the importance of understanding the sequence of beneficiary designations and their implications for receiving benefits.